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Trade policy responses to the COVID‐19 pandemic crisis: Evidence from a new data set

Author

Listed:
  • Simon Evenett
  • Matteo Fiorini
  • Johannes Fritz
  • Bernard Hoekman
  • Piotr Lukaszuk
  • Nadia Rocha
  • Michele Ruta
  • Filippo Santi
  • Anirudh Shingal

Abstract

This paper presents new high‐frequency data on trade policy changes targeting medical and food products since the beginning of the COVID‐19 pandemic, documenting how countries used trade policy instruments in response to the health crisis on a week‐by‐week basis. The data set reveals a rapid increase in trade policy activism in February and March 2020 in tandem with the rise in COVID‐19 cases but also uncovers extensive heterogeneity across countries in both their use of trade policy and the types of measures used. Some countries acted to restrict exports and facilitate imports, others targeted only one of these margins, and many did not use trade policy at all. The observed heterogeneity suggests numerous research questions on the drivers of trade policy responses to COVID‐19, on the effects of these measures on trade and prices of critical products, and on the role of trade agreements in influencing the use of trade policy.

Suggested Citation

  • Simon Evenett & Matteo Fiorini & Johannes Fritz & Bernard Hoekman & Piotr Lukaszuk & Nadia Rocha & Michele Ruta & Filippo Santi & Anirudh Shingal, 2022. "Trade policy responses to the COVID‐19 pandemic crisis: Evidence from a new data set," The World Economy, Wiley Blackwell, vol. 45(2), pages 342-364, February.
  • Handle: RePEc:bla:worlde:v:45:y:2022:i:2:p:342-364
    DOI: 10.1111/twec.13119
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    1. Lionel Fontagné & Houssein Guimbard & Gianluca Orefice, 2019. "Product-level Trade Elasticities," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-02444897, HAL.
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    4. Bernard Hoekman & Anirudh Shingal & Varun Eknath & Viktoriya Ereshchenko, 2022. "COVID‐19, public procurement regimes and trade policy," The World Economy, Wiley Blackwell, vol. 45(2), pages 409-429, February.
    5. Simon J. Evenett, 2020. "Sicken thy neighbour: The initial trade policy response to COVID‐19," The World Economy, Wiley Blackwell, vol. 43(4), pages 828-839, April.
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    Cited by:

    1. Das, Sanchita Basu & Sen, Rahul, 2022. "Trade Interdependencies in COVID-19-Related Essential Medical Goods: Role of Trade Facilitation and Cooperation for the Asian Economies," ADB Economics Working Paper Series 666, Asian Development Bank.
    2. Evenett, Simon J., 2021. "Export curbs on essential goods in the wake of Covid-19 and the least developed countries: Permanent scarring from a temporary outburst," Briefing Papers 19/2021, German Institute of Development and Sustainability (IDOS).
    3. Bernard Hoekman & Anirudh Shingal & Varun Eknath & Viktoriya Ereshchenko, 2022. "COVID‐19, public procurement regimes and trade policy," The World Economy, Wiley Blackwell, vol. 45(2), pages 409-429, February.
    4. Inna Čábelková & Luboš Smutka & Svitlana Rotterova & Olesya Zhytna & Vít Kluger & David Mareš, 2022. "The Sustainability of International Trade: The Impact of Ongoing Military Conflicts, Infrastructure, Common Language, and Economic Wellbeing in Post-Soviet Region," Sustainability, MDPI, vol. 14(17), pages 1-14, August.
    5. Evgeny N. Smirnov & Sergey A. Lukyanov, 2021. "Instability of international trade and approaches to optimal regulation," Upravlenets, Ural State University of Economics, vol. 12(5), pages 21-31, November.
    6. Ahn, Soojung & Steinbach, Sandro, 2022. "COVID-19 Trade Actions and Their Impact on the Agricultural and Food Sector," 2023 Allied Social Sciences Association (ASSA) Annual Meeting, January 6-8, 2023, New Orleans, Louisiana 316789, Agricultural and Applied Economics Association.
    7. Simona Giglioli & Giorgia Giovannetti & Enrico Marvasi & Arianna Vivoli, 2021. "The Resilience of Global Value Chains during the Covid-19 pandemic: the case of Italy," Working Papers - Economics wp2021_07.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    8. Michael Klien & Michael Böheim & Matthias Firgo & Andreas Reinstaller & Peter Reschenhofer & Yvonne Wolfmayr, 2021. "Stärkung der Unabhängigkeit des Wirtschaftsstandortes Österreich bei kritischen Produkten," WIFO Studies, WIFO, number 67234, February.
    9. Ines Kersan‐Škabić, 2022. "The COVID‐19 pandemic and the internationalization of production: A review of the literature," Development Policy Review, Overseas Development Institute, vol. 40(2), March.
    10. Aditya Goenka & Lin Liu & Manh-Hung Nguyen, 2021. "Modeling optimal quarantines with waning immunity," Discussion Papers 21-10, Department of Economics, University of Birmingham.
    11. Egger, Peter H. & Masllorens, Gerard & Rocha, Nadia & Ruta, Michele, 2023. "Scarcity nationalism during COVID-19: Identifying the impact on trade costs," Economics Letters, Elsevier, vol. 223(C).
    12. Wijesinghe, Asanka & Kaushalya, Thilani, 2022. "Caloric consumption efficiency and import dependency: Evidence from Sri Lanka," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 420-438.
    13. Qing Zhou & Saiya Li & Yali Zhang, 2023. "Combined Impacts of COVID-19 Pandemic and Locust Plague on Grain Production and Trade Patterns in South Asia," Agriculture, MDPI, vol. 13(6), pages 1-14, June.
    14. Alessandro Nicita & Enxhi Tresa, 2022. "Trade policy and trade resilience during the 2020 trade downturn," UNCTAD Working Papers #1, United Nations Conference on Trade and Development.
    15. Nadia Doytch & Nishant Yonzan & Ketan Reddy & Filip De Beule, 2021. "Tracking Greenfield FDI During the COVID-19 Pandemic: Analysis by Sectors," Foreign Trade Review, , vol. 56(4), pages 454-475, November.
    16. Gian Paolo Clemente & Rosanna Grassi & Giorgio Rizzini, 2022. "The effect of the pandemic on complex socio-economic systems: community detection induced by communicability," Papers 2201.12618, arXiv.org.

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    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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